5 Foreword Vĕra Jourová Commissioner for Justice, Consumers and Gender Equality A s the new European Commissioner for Justice, Consumers and Gender Equality, equality between women and men is one of my key priorities. For the first time, gender equality features explicitly in the title of a European Commissioner, a sign of the Commission s renewed commitment to this cause. Equality between women and men has progressed over the last 20 years in the EU. Women have entered the labour market in large numbers and contributed to the EU s economic growth and competitiveness. Changes have not happened automatically, but are a result of strategic policy initiatives at European, national and local level. The 2014 report on equality between women and men presents the latest figures illustrating the most recent developments. The report presents key EU actions on gender equality, which combine legislation, policy measures and funding. It includes projects at national and grass-roots level, highlighting the joint efforts by the EU and its Member States. In line with its obligations under the Treaties, the EU promotes gender equality in all its activities, from education to work, from research to external policy. Despite progress and despite many actions taken, gender equality still remains very much an unfinished business. This report sheds light on realities that are too often ignored, contested, or even denied. It is necessary to recall the scale of gender inequalities, the waste of female talent on the labour market, and the unacceptably high levels of violence against women. The report should serve as a tool to raise awareness and to help policymakers to formulate and implement better policies and to learn from each other. 3

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7 Introduction Equality between women and men is a fundamental right and a precondition for effective democracy and lasting economic growth. It is one of the EU s founding principles and a building block of its future. Gender equality contributes to jobs, growth, fairness and democratic change ( 1 ). The present report outlines the progress achieved in 2014 in the six priority areas of the Commission s strategy for equality between women and men. It is a way for the Commission to review EU and Member State action on gender equality and identify remaining challenges and gender gaps, on the basis of updated information and statistics. It strengthens the EU s accountability and lays the ground for evidence-based policies ( 2 ). Although gender gaps have narrowed in recent decades, inequalities within and between Member States have grown overall and challenges remain in critical areas: gender gaps in employment and decision-making have narrowed in recent years, but women still account for less than a quarter of company board members, despite representing almost half of the employed workforce (46 %). Also, the extent of gender equality varies substantially across Member States and has not reached everyone. Deficient work-life balance policies hamper women s employment and therefore the potential for economic growth; progress in closing the gender pay and pension gaps has been frustratingly slow. The former is stagnant at 16 % and the latter has reached 39 %. Occupational segregation is still widespread and women tend to be concentrated in less well-paid sectors; Men drop out of school more often and perform less well in reading. Women are more likely to have a higher education degree but are significantly under-represented in STEM ( 3 ) studies and careers, in research and in senior posts at all levels of education, including higher education; the prevalence of gender-based violence is still alarmingly high. A third of women in the EU have experienced physical or sexual violence; while a few national parliaments and governments are about to reach gender parity, women still account for less than a third of ministers and members of parliaments in the vast majority of Member States. At this rate of change, it would take another 70 years to achieve gender equality. Therefore, active policy initiatives are needed to accelerate progress and meet the expectation of citizens. Nearly all Europeans (94 %) agree that equality between women and men is a fundamental right and a large 5

8 Report on equality between women and men 2014 majority of citizens (76 %) ( 4 ) believe that tackling inequality between women and men should be a priority for the EU. The EU has acted to advance gender equality over the past year and will continue to do so. In particular, its activities in 2014 included: promoting female employment, investment in early childhood education and care facilities, accessible long-term care and the reduction of tax-benefit disincentives for women to work through country-specific recommendations (see Annex 1) and using the significant possibilities for co-funding with the European Structural and Investment Funds; continuing to raise awareness of the gender pay gap and to monitor the application of legislation on equal treatment; it also issued a recommendation on pay transparency ( 5 ); continuing to protect women and girls from gender-based violence through legislation and practical measures on victims rights, by supporting specific action, such as national governments campaigns against gender-based violence and grass-root projects led by non-governmental organisations. The present report contributes to the stock-taking exercise, which is a pre-condition for developing a shared vision, common goals and effective measures. 6

9 1. Equal economic independence Fifteen years into the 21st century and five years before its Europe 2020 target date, Europe needs to fully utilise the talents of all its women. Women s indispensable contribution to family incomes is growing Over the past decade, more women have become involved in full-time and, particularly, in part-time work (see Figure 1). However, the percentage of women in employment in 2014 (63.5 %) is still 11.5 percentage points (pp) off the Europe 2020 target for total employment and the rate for men (both 75 %). Also, employed women are still four times more likely to be working part-time than employed men. At the same time, more and more families depend on women s work a majority of mothers (61 %) are also breadwinners or co-breadwinners ( 6 ). Figure 1: EU-28 men and women aged by activity status in 2014 (%) Source: Eurostat, Labour Force Survey (LFS), 2014 (second quarter) Full-time Inactive Part-time Unemployed Men Women

10 Report on equality between women and men 2014 but the trend towards equal economic independence has come to a grinding halt or, in some cases, been reversed Figure 2: EU-28 NEET rate (%) by type and gender for young people (15-29 years old), 2013 Inactive (%) Unemployed (%) Having a paid job is in general a necessary condition of financial independence, but unemployment rose steeply for both women and men during the crisis (see Figure 1) ( 7 ) and shows no signs of falling a whole generation has been affected. The rate of those not in education, employment or training (NEET) is consistently higher for women since before the crisis. The proportion of inactive young women, i.e. those who are not employed and are not looking for a job, remains double that of young men (see Figure 2). Moreover, most of the countries with women s employment rates below the EU average have fallen further behind during the crisis (see Figure 3) Women Men Figure 3: Women's employment rate in 2013 (%) and progress between 2008 and 2013 (in pp) Source: Eurostat, LFS MT Catching up 10 Moving further ahead 5 DE LU HU AT CZ PL BE UK FR SE female employment rate (%) IT EU RO LT NL FI HR SK ET DK IE -5 ES BG PT LV SI Falling further behind CY Losing momentum Progress (in pp) EL -10 Note: the X-axis ranks countries according to the female employment rate in 2013 and the Y-axis according to the changes in female employment rate between 2008 and For example, the female employment rate in Hungary increased from 55% in 2008 to 57% in For the EU as a whole, the employment rate stagnated at 63% in

11 1. Equal economic independence Work-life balance: a policy mix essential for success Improving women s position in the economy has always been closely linked with finding ways of reconciling work and family life. Lasting change requires a suitable policy mix that offers mothers and fathers with real alternatives. This should involve: Figure 4: Percentage of children cared for in formal structures, EU-27, Source: Eurostat, EU-SILC h or over 1-29 h 83 a) affordable quality childcare, out-of-school care and care for other dependants; b) paid leave for women and men; and c) flexible working arrangements, such as job-sharing, working from home and flexitime, and innovative measures to promote equal sharing of work and care (see text box below on the German and Finnish examples). Childcare availability, maternity, paternity and parental leave allowances and effective working hours still vary considerably across the EU (see Annex 2). However, by adopting legislation, setting targets, issuing recommendations and encouraging transfers of good practice, the EU has positively influenced national policies on facilitating work-life balance ( 8 ). The EU has recognised the significance of childcare in signing up to the Barcelona targets, whereby all Member States must seek to provide childcare places for 33 % of children under three years of age and 90 % of children between three and mandatory school age. It has also supported countries by expanding childcare facilities through the European Structural and Investment Funds (see Figure 4 and box on page 10). While the overall progress in childcare has been modest, provision of the more intensive kind of care (i.e. for over 30 hours a week) has grown strongly. Surveys indicate that Europeans are in favour of a more equal sharing of care activities between women and men Less than 3 years From 3 years to minimum compulsory school age Only a very small minority (3 %) says that they do not want men to be more involved in caring activities ( 9 ). In practice, however, things change slowly: working men devote only nine hours a week to care and (unpaid) household work, as compared with 26 hours for working women ( 10 ), who therefore bear a double burden. The Commission launched a call for proposals in December 2014 to provide funding for projects managed by gender equality ministries and promoting a good balance between professional and private life and a more equal sharing of housework and care responsibilities between women and men. The successful projects (to start by the end of 2015) could, for instance, include campaigns highlighting particularly successful men as care-givers, having adapted their working days to accommodate the needs of their families, or encourage companies to protect employees who make use of their right to family leave from having to face adverse consequences

12 Report on equality between women and men 2014 EU-funded projects Examples of EU-funded projects aimed at promoting the social and labour market integration of women Structural and Investment Funds (ESIF), in particular the European Social Fund (ESF) and European Regional Development Fund (ERDF) provide substantial funding to create more places in childcare facilities and to help reconcile work and family life. For instance, by 31 December 2014, thanks to funding support from the ESF, 299 nurseries, 30 children s clubs, and 49 day-care providers had started operating participants of the projects were covered by this support and persons returned to work after a break related to childbirth and / or raising children. One example is the ESF project A small kindergarten is great in rural areas of the Dolnoslaskie region in Poland, which has resulted in the establishment of 16 kindergartens in small towns previously without access to childcare facilities. The I like going to kindergarten project in Opole was geared to prolonging care during the week and providing care on Saturdays for children of parents who work longer hours or weekends. Of the 341 children covered, 219 had not previously attended pre-primary schools. Moreover, through the ERDF Grant Scheme in Malta, childcare facilities are upgraded and improved. This enables a better work-family balance and encourages an increased participation of women in the local workforce. It also contributes towards attaining the EU targets of providing child placements for at least 33% of children aged between 0-3 years in Malta. The ESIF also support female entrepreneurship. For example, the ESF-financed project the Women s initiative (ABC of entrepreneurship) in Poland provided training and grants for unemployed women who wanted to start up new businesses. Similarly, ERDF s support for entrepreneurship can also benefit women. For instance, the WINNET8 ( * ) project implemented in Bulgaria, Finland, Greece, Italy, Poland, Portugal, Sweden, United Kingdom. This is a capitalisation project which aims to contribute to regional growth by counteracting horizontal gender segregation in the labour market and by improving women s participation in innovation and entrepreneurship, through provision of business counselling, education, training, project development and finance, enterprise support, mentoring and joint action networks for women. The PROGRESS financed project, Policies and Instruments for a Healthy and Dignified Active Ageing for Elderly Women, was implemented by the Italian Department for Equal Opportunities. It originated from the finding that in Italy gender differences were a central feature of poverty and social exclusion, especially in older age. The project aimed to design innovative policies and interventions for elderly women in the broad context of the active and healthy ageing framework. To this end, a National Working Table was set up in Italy and attended by the central government institutions as well as national and local stakeholders. The participants of the Table shared and discussed results of the project research activities, including a feasibility study on the establishment of a community service centre for women, and drafted innovative proposals for the promotion of an active and healthy ageing of elderly women. As a follow-up of the project, a pilot implementation of the community centre for women by one of Italian municipalities has been planned. (*) 10

13 1. Equal economic independence The EU also promotes adequate leave through legislation, adopting in recent years the Parental Leave Directive ( 11 ), which gives all working parents the right to at least four months leave after the birth or adoption of a child (previously they could take up to three months). Because at least one of the months cannot be transferred to the other parent, fathers have an incentive to take the leave themselves (otherwise that month will be lost). While this Directive has fostered the development of new rights for mothers and fathers, the revision of two other Directives on leave and working time has run into major difficulties. The co-legislators have still not reached agreement on the proposal, tabled by the Commission in 2008, to amend the Maternity Leave Directive ( 12 ) and grant four weeks of paid maternity leave on top of the current 14 weeks. In the work programme it adopted in December 2014, the Commission announced that it would withdraw the proposal and replace it by a new initiative if no agreement is found within six months. In addition, workers and employers organisations have failed to reach an agreement on the revision of the Working Time Directive ( 13 ). In response, in December 2014, the Commission launched a public consultation on revising the Directive, including through the introduction of new support for work-life balance. Over the past year, the EU also promoted a better policy mix through country-specific recommendations on female employment addressed to half of the Member States in the framework of the Europe 2020 Strategy (see Annex 1). This is a strong signal that Europe cannot reach its headline target on employment without further efforts to promote women s employment. This was confirmed by the Member States request for a greater emphasis on gender equality in EU economic governance ( 14 ). In Germany, a reform of parents benefit (Elterngeld- Plus) ( 15 ) adopted in 2014 introduces a bonus for partners: If parents share childcare equally and work between 25 and 30 hours a week for at least four months, they will receive the benefit for an additional four months. In addition, the reform involves new flexible forms of parental leave. Germany introduced new and improved regulation with the Family Care Time Act and the Care Time Act to make it easier to reconcile family, care and work. From 1 January 2015, employees are given more time flexibility and security so that they can care for their relatives and continue to work. In 2014, Finland hosted a seminar focused on the role of men in developing gender equality. Finland is ahead of other EU countries in developing a more comprehensive approach to men s issues ( 16 ). Its paternity leave schemes are quite effective in terms of the take-up by fathers. Finland also has a governmental Working Group dealing with men s issues. Furthermore, it launched some reforms in education which specifically integrate men s perspective in school curricula and monitoring of progress towards more gender equality. 11

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15 2. Equal pay for equal work and work of equal value Women still get paid less than men and continue to take up different types of job. However, applying the equal pay principle, as enshrined in the Treaty since 1957, is essential, as pay differences contribute to a widening of inequalities throughout people s lives. Educational and occupational segregation The education and training performances, as measured by the Europe 2020 indicators, are marked by gender inequalities: in 2013, 10.2 % of young women were earlyschool leavers compared to 13.6 % of young men. The tertiary achievement rate reached 41.2 % among women and 32.7 % among men ( 17 ). Moreover, 15-year-old girls outperform boys in reading ( 18 ). During adulthood, women s participation in lifelong learning is more frequent than men. While women s participation in tertiary education and in lifelong learning exceeds that of men in most Member States, this relative advantage of women graduates does not fully translate into an advantage in the labour market: as for men, the likelihood of working for women increases with higher educational attainment, but the gender gap in employment remains significant even at the highest levels of educational attainment (73.4 % for women with a tertiary degree, 77.7 % for men) ( 19 ). Occupational gender segregation, or the tendency for women and men to go into different types of work, partly reflects gender differences in education and training. Women remain over-represented in fields of study that are linked to traditional female roles, such as the arts, the humanities, health and teaching, but under-represented in engineering, science and mathematics (see Figure 5). Even when women graduate in sciences and technology, they are less likely to go on to work in those fields. For example, only 29 of every female graduates have a computing-related degree and only four go on to work directly in ICT ( 20 ). Gender inequalities in science and in research persist ( 21 ): Women represent 59 % of new graduates, but 46 % of PhD degree holders, 33 % of researchers, and only 20 % of the highest academic staff and 11 % of heads of universities or assimilated institutions. Also, there are strong gender imbalances in the teaching profession, with women greatly overrepresented in the teaching force but underrepresented in management positions, including in higher education. The persistence of this segregation in education and occupations reinforces gender stereotypes, facilitates the undervaluation of women s work, leads to a suboptimal matching of skills and jobs, and contributes to bottlenecks on the labour market ( 22 ). To overcome stereotypes and segregation, the Commission launched a campaign ( 23 ) in March 2014 encouraging young people, in particular women, to take up ICT-related careers. Also, the Erasmus+ Programme and its predecessor, the Lifelong Learning Programme, 13

16 Report on equality between women and men 2014 Figure 5: Female graduates as % of total graduates, by field Source: EU, LFS All fields Engineering, manufacturing and construction Science, mathematics and computing Agriculture and veterinary Services Social science, business and law Humanities and art Health and welfare Education and training have supported a number of projects on gender equality in education ( 24 ). Women represent the most underrepresented source of entrepreneurship, with only 30 % of new start-ups in Europe established by women. Under the Entrepreneurship Action Plan, the Commission has supported action to increase access to funding, educational, mentoring and business networking opportunities for women who want to start, run and grow a business ( 25 ). Recommendation on strengthening the principle of equal pay between men and women through transparency ( 27 ). Building on experience from a number of Member States, the Recommendation suggests a toolbox of concrete measures for improving pay transparency, which may expose gender bias and discrimination in organisations pay structures and therefore lead to corrective action. Figure 6: The unadjusted gender pay gap (%), in 2012 Source: Eurostat, Structure of Earning Survey Tackling the gender pay gap On average, across the economy, for every euro men get paid in the EU, women get paid only 84 cents (see Figure 6). Even in the same occupation and with the same education level, women tend to be paid less than their male counterparts. Many factors contribute to the gender pay gap and reducing it requires a multi-pronged approach. 16% First, the Commission constantly monitors the correct application and enforcement of existing EU equal pay legislation in the Member States ( 26 ). Also, in March 2014, it adopted a 14

17 2. Equal pay for equal work and work of equal value To raise public awareness of the size and persistence of the gender pay gap, the Commission has since 2012 organised a European Equal Pay Day. In 2014, it provided funding (EUR 2.5 million) for eight transnational projects aimed at understanding and reducing the gap. One of these involves an online tool whereby companies in France, the UK, Finland, Poland and Portugal can calculate their own gender pay gap and analyse the issues that may be preventing women from getting paid the same as their male colleagues. In Austria, equal pay reports have been compulsory since 2013 for companies with over 250 employees and since 2014 for those with over 150. In addition to legislation in the field of employment, there is also EU legislation to ensure equal treatment in terms of access to, and the supply of, goods and services. In 2015, the Commission will report on the implementation of the Directive applying this principle ( 28 ) and on changes following the European Court of Justice ruling ( 29 ) prohibiting the use of gender-based actuarial factors in insurance contracts (e.g. separate life-expectancy statistics for men and women in life insurance or separate accident statistics in motor insurance). The total earnings gap: a better understanding of the scope of the inequalities Women face three types of disadvantage on the labour market: being paid less per hour, working fewer hours in paid jobs and being under-represented in paid jobs ( 30 ). These disadvantages combine and mutually reinforce each other so as to create an overall problem deeper than each of its components. The result is that women earn much less than men on average: the total earnings gap reached 37 % in 2010 (see Figure 7) ( 31 ). Although data show that this represented an improvement since 2006, Europe is still very far from achieving gender equality on the labour market. Figure 7: Total earnings gap (%) and its components: the contribution of the gender gaps in pay, hours worked and employment to the total earnings gap, in 2010, EU-27 Source: Eurostat Gender pay gap Gender hours gap Gender gap in employment LT SI LV BG DK FI PT RO SE PL HU FR EE IE CY BE SK EU27 ES LU CZ IT GR DE UK AT NL MT 15

18 Report on equality between women and men 2014 The older generation bears the brunt of lifelong inequality As women leave the labour market and move into retirement, they continue to encounter in-built discrimination as regards pensions. Far from being a neutral filter passing on improvements in employment, pension systems may add new disadvantages of their own. Significant inequality remains: the gender gap in pensions widened to 39 % in 2012, from 38 % in 2008, and in some countries a third of women receive no pension at all (see Annex 2). In almost all Member States women are much more exposed to the risk of poverty in old age than men. Women s lower pay, higher concentration in part-time work, and more interrupted careers due to care contribute to women s lower pension entitlements. Furthermore, women are less likely to be covered by supplementary pensions and are generally at a disadvantage when the role of private pension schemes increase or when public schemes strengthen the link between contributions and benefits. Finally, as women live longer on average but typically retire earlier than men, notably where the pensionable age is lower for women, they have less time to build entitlements and are more affected by changes to indexation mechanisms. Moreover, as women live longer, their later years are often marked by deteriorating health and disability (see Figure 8). Long-term care is therefore even more essential for women, as stressed by the Social Protection Committee s 2014 report on Adequate social protection for long-term care needs in an ageing society ( 32 ). Poverty and social exclusion: adding to the worrying trends In June 2010, the EU committed itself, as part of the Europe 2020 Strategy, to the ambitious target of bringing 20 million people out of poverty and social exclusion by However, instead of progress towards the target, we are witnessing a rise in poverty affecting both women and men: 65 million Figure 8: Life expectancy at birth and healthy life years in 2012 Source: Eurostat Women Men Healthy life years Life expectancy at birth women and 57.6 million men were at risk of poverty and social exclusion in 2013 (as compared with 62.5 and 55 million, respectively, in 2010). This represents a quarter of the EU population. Single parents mainly mothers are at greatest risk. About 50 % of single parents were at risk of poverty or social exclusion in 2013, i.e. double the risk for the population as a whole In France, about 40 % of alimony pensions remain unpaid (or barely paid), a factor that contributes to poverty among single mothers. Under France s law of 4 August 2014 for real equality between women and men, an 18-month experiment has been launched in 20 local districts to support women who do not receive their alimony pension. The situation of Roma women is particularly alarming ( 33 ). They are often victims twice over of racial discrimination outside their community and gender-based discrimination. 16

19 2. Equal pay for equal work and work of equal value For Roma women, employment is the urgent issue: on average, 21 % are in paid work (as compared with 35 % of Roma men) and many face a high risk of poverty. They also fall behind in terms of education: more Roma women than men say that they have never been to school (19 % as compared with 14 %) and that they cannot read and write (23 % as compared with 15 %). The European institutions and Member States have a joint responsibility to change this ( 34 ). A gender-sensitive approach to migration and asylum Migrants are often worse off than people living in their home countries: 36 % of foreign-born women in the EU and 33 % of foreign-born men were at risk of poverty or social exclusion in 2013 ( 35 ). The situation of migrant women varies widely across countries and depends on the policies in place, including those on informal work, e.g. in personal services. The Commission called for more targeted support for vulnerable migrants, especially women, in its March 2014 Communication An open and secure Europe: making it happen ( 36 ). A growing proportion of asylum seekers in the EU are women (34 % in 2013, as compared with 28 % in 2008), but asylum policies have yet to adapt to this new trend. To remedy this, the European Asylum Support Office (EASO) has developed training modules for asylum officers and practitioners in that take gender issues into account. The modules will be introduced in

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